The Nasdaq Golden Dragon China Index has dropped 15% in the last two trading days.
The index follows the 98 biggest US-listed Chinese stocks – which have fallen 45% since a record high in February 2020, according to BBC.
Investor confidence has apparently faded since Beijing cracked down on tech giants and education firms based in China.
The government recently administered new changes to the education sector, stating that “Curriculum subject-tutoring institutions are not allowed to go public for financing; listed companies should not invest in the institutions, and foreign capital is barred from such institutions.”
In addition, Chinese regulators have also clamped down on one of the country’s most popular waimai options – Meituan. China’s State Administration for Marketing Regulation recently issued new rules to improve the conditions of waimai drivers.
The marketing regulator called for Meituan to pay drivers a minimum wage, be given better training and have their workload eased, as cited by BBC.
On Tuesday, Meituan shares dropped a record 17.6% in Hong Kong markets – in addition to a 14% fall on Monday.
As for China-based education sector US-listed stocks, USD770 billion has been swiped off in the last five months.
China’s regulators have been more focused on US-listed Chinese companies as of late. Alibaba, which was listed on NASDAQ in 2014, was given a USD2.8 billion fine for abuse of market position.
[Cover image via Pixabay]